Louisville, Kentucky
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AARON’S LOUISVILLE, KENTUCKY CONFIDENTIAL OFFERING MEMORANDUM CONTENTS PRESENTED BY NEAL PRINGLE 3 Director of Investment Sales EXECUTIVE P 770.955.2434 SUMMARY [email protected] ADAM BIRNBREY Senior Investment Sales Advisor 10 P 770.955.2434 LOCATION [email protected] OVERVIEW REID BURT Associate P 813.530.2773 16 [email protected] DEMOGRAPHICS KEITH VALENTINE Senior Vice President P 678.718.1882 [email protected] EXECUTIVE SUMMARY INTRODUCTION SITE PLAN TENANT PROFILES LEASE ABSTRACTS FINANCIAL ANALYSIS NORTHEAST GE APPLIANCE PARK JEFFERSON COMMONS JEFFERSON MALL NEW APARTMENT COMPLEX ® OUTER LOOP (27,900 AADT) PRESTON HIGHWAY (24,500 AADT) INTRODUCTION HOME EXECUTIVE TSCG is pleased to offer for sale the opportunity to purchase a freestanding Aaron’s (the “Property”), located SUMMARY at 8022 Preston Hwy in Louisville, Kentucky. The Property has a long history at this location with over 20 years of occupancy. Aaron’s recently executed a 5–year lease extension with one, 5–year option to renew. The Property is situated along the highly trafficked Preston Hwy (24,500 AADT) in a dynamic retail corridor. Less than one mile from Aaron’s includes the 904,967 sf Jefferson Mall (Dillard’s, JCPenney, Ross, Round 1, OVERVIEW Old Navy); 205,858 sf Jefferson Commons (Academy Sports, Aldi, Michaels, Ulta, Five Below); 168,697 LOCATION sf Festival at Jefferson Court (Kroger, Staples, PetSmart, TJ Maxx); and 105,529 sf Tymberwood Shopping Center (Best Buy, CVS and Dollar Tree). 8022 Preston Hwy ADDRESS Louisville, KY 40219 DEMOGRAPHICS GLA (SF) 10,000 LAND ACREAGE 0.80 Acres YEAR BUILT 1999 OCCUPANCY 100% NOI $ 73,108 PRICE $ 835,500 CAP RATE 8.75% AARON’S - LOUISVILLE, KY – TSCG.COM 5 INVESTMENT HIGHLIGHTS PRESTON HIGHWAY (24,500 AADT) • Recent 5–year lease extension • Over 20 years of occupancyBEARNO'S at PIZZA this location • Adjacent to intersection of Preston Hwy and Outer Loop (52,000+ AADT) • Nearly 2 million sf of retail within 1–mile radius • Notable major retailers in immediate vicinity include Walmart, Home Depot, Kroger, Target, Academy, Best Buy, Michaels, Aldi, Dillard’s, Ross and TJ Maxx ALL GOOD COMPUTERS • Minutes away from Louisville International Airport (3rd busiest cargo airport in US) • 7 miles south of University of Louisville (22,000+ students) CONCRETE • 171,000+ people and 68,000+KINGDOM homes within a 5–mile radius TREND SETTER'S ACADEMY TENANT PROFILE – WALK ON’S HOME EXECUTIVE SUMMARY Company Name Aaron's, Inc. OVERVIEW Number of Locations 1,600+ (US and Canada) LOCATION Year Founded 1955 Ownership Public Traded On NYSE: AAN Headquarters Atlanta, GA DEMOGRAPHICS Headquartered in Atlanta, Aaron’s is a leader in the lease ownership of name brand furniture, consumer electronics and home appliances. The company was founded in 1955 with the expectation to provide customers the best deal on the highest quality products. The lease–to–own model helped fill a big void in the market, expanding the company’s footprint to 1,600+ stores today (combination of company–operated and franchised stores) in 47 states and Canada. Aaron’s employs a staggering 11,900 employees (2017) and is an S&P 400 Component. The company, which went public in 1982, trades on the New York Stock Exchange under the ticker symbol: AAN. Aaron’s annual revenue for 2018 was $3.829B, a 13.16% increase from 2017. AARON’S - LOUISVILLE, KY – TSCG.COM 7 LEASE ABSTRACT HOME EXECUTIVE SUMMARY AARON’S LEASE ABSTRACT Tenant Aaron's, Inc. d/b/a Aaron's Term 5 Years Rent Commencement Date April 1, 1999 OVERVIEW LOCATION Lease Expiration Date March 31, 2024 Options One (1), 5–year option Building Size 10,000 SF Land Acreage 0.80 acres Year Built 1999 DEMOGRAPHICS Permitted Uses The Demised Premises shall be used for any lawful retail sales use, as an Aaron’s Rental Purchase store, and excludes any home improvement uses. CAM Landlord’s expense not to exceed $8,000 Taxes Landlord's responsibility Insurance Landlord's responsibility Estoppel Certificate Thirty (30) days after Landlord's written request. Assignment and Subleasing Tenant may not assign nor sublease without the consent of Landlord. AARON’S RENT SCHEDULE Lease PSF Monthly Annual Option PSF Monthly Annual Years Base Rent Base Rent Base Rent Years Base Rent Base Rent Base Rent 1–5 $9.60 $8,000.00 $96,000.00 6–10 $10.08 $8,400.00 $100,800.00 AARON’S - LOUISVILLE, KY – TSCG.COM 8 FINANCIAL ANALYSIS HOME EXECUTIVE SUMMARY RENTAL REVENUE Potential Base Rent $96,000 OVERVIEW Absorption & Turnover Vacancy $– LOCATION Scheduled Base Rent $96,000 Total Rental Revenue $96,000 OPERATING EXPENSES CAM $8,000 DEMOGRAPHICS Taxes $12,392 Capital Reserve ($0.25 PSF) $2,500 Total Operating Expenses $22,892 NET OPERATING INCOME $73,108 NOTES 1. CAM is capped at $8,000 per year. 2. Taxes are based on 2018 property tax records. 3. Capital Reserve expense is $0.25 PSF. AARON’S - LOUISVILLE, KY – TSCG.COM 9 LOCATION OVERVIEW LOCATION MAP TRADE AREA ZOOMED OUT TRADE AREA ZOOMED IN LOUISVILLE, KY OVERVIEW SOUTH SOUTHERN HIGH SCHOOL 1,248 STUDENTS PRESTON HIGHWAY (24,500 AADT) LOUISVILLE, KY HOME The largest city in Kentucky, Louisville is the 29th most populous city in the US. Louisville is located in the northern part of Kentucky along the border of Indiana. The city is part of the Louisville–Jefferson County, KY–IN MSA (Louisville– EXECUTIVE Jefferson county and 12 surrounding counties) with a total SUMMARY population of approximately 1.3 million. Today, Louisville is known as the home to the Kentucky Derby, Kentucky Fried Chicken, University of Louisville, Muhammad Ali, Louisville Slugger bats and two Fortune 500 companies. OVERVIEW BUSINESS LOCATION Louisville is home to a handful of companies and organizations across several industrial classifications. It’s convenient location in the central United States (one day’s road travel to over half the cities in the US) has made DEMOGRAPHICS Louisville a pivotal location for the transfer of cargo. The city’s proximity to three major interstate highways (1–64, I–65 EDUCATION TRANSPORTATION and I–71) also contributes to its importance to the shipping and cargo industry. Today, the Worldport global air–freight There are six, four–year universities in the city: University of The three major interstate highways that pass–through hub for UPS is located at the Louisville International Airport. Louisville (22,459 students), Bellarmine University (3,973 Louisville include I–64, I–65 and I–71. The city of Louisville students), Sullivan University (2,900 students), Spalding has become a big hub for the cargo and shipping sectors. Other major industries within the city include two major University (2,322 students), Boyce College (1,235 students) Louisville’s main airport, Louisville International Airport, is Ford plants, Kentucky Fried Chicken, the Kentucky Derby and Simmons College of Kentucky (219 students). centrally located in the city and home to UPS’s Worldport (157,000+ visitors annually), Louisville Slugger bats and global air hub. Over 4.7 billion pounds of cargo pass the American Whiskey industry. One–third of all bourbon The University of Louisville (Cardinals mascot) is touted through the airport annually. Due to this, the airport is manufactured in the US comes from Louisville. Brown– for its success in the medical field and athletic programs. the third busiest airport in the US regarding cargo traffic. Forman, one of the major makers of American whiskey, is The school consistently ranks top in the National Institutes Louisville International Airport is located one exit north of headquartered in Louisville and is a Fortune 1000 company. of Health rankings and is a contender year–after–year in the Property. Additional major employers to the city include two Fortune men’s basketball, baseball and football. U of L is located 7 500 companies: Humana and Yum Brands. miles north of the Property. AARON’S - LOUISVILLE, KY – TSCG.COM 15 DEMOGRAPHICS RADII DRIVE TIMES NORTH BRAND NEW 552–UNIT APARTMENT COMPLEX PROPOSED NEW RETAIL DEVELOPMENT OUTER LOOP (27,900 AADT) PRESTON HIGHWAY (24,500 AADT) 18 HOME EXECUTIVE SUMMARY OVERVIEW LOCATION DEMOGRAPHICS RADII AARON’S - LOUISVILLE, KY – TSCG.COM 19 HOME EXECUTIVE SUMMARY OVERVIEW LOCATION DEMOGRAPHICS DRIVE TIME AARON’S - LOUISVILLE, KY – TSCG.COM WEST LOUISVILLE INTERNATIONAL AIRPORT 3RD BUSIEST CARGO AIRPORT IN US 22,000+ STUDENTS (128,000 AADT) PRESTON HIGHWAY (24,500 AADT) DISCLAIMER This Offering Memorandum has been prepared by TSCG for The Offering Memorandum does not constitute a representation This Offering Memorandum and the contents, except such use by interested parties to evaluate the potential acquisition that there has been no change in the business or affairs of information which is a matter of public record or is provided of Aaron’s located in Louisville, Kentucky (the “Property”). All the Property or Owner since the date of preparation of the in sources available to the public, are of a confidential nature. projections have been developed by TSCG, Owner and Offering Memorandum. Analysis and verification of the By accepting this Offering Memorandum, you agree that you designated sources, are based upon assumptions relating to information contained in the Offering Memorandum is solely will hold and treat it in the strictest confidence, that you will the general economy, competition, and other factors beyond the responsibility of the prospective purchaser. not photocopy or duplicate it, that you will not disclose this the control of TSCG and Owner, and therefore are subject to Offering Memorandum or any of the contents to any other entity variation. No representation is made by TSCG or Owner as Additional information and an opportunity to inspect the (except to outside advisors retained by you, if necessary, for to the accuracy or completeness of the information contained property will be made available to interested and qualified your determination of whether or not to make a proposal and herein, and nothing contained herein is or shall be relied on as prospective investors upon written request.